Answer:
Steelers Inc.
a) Journal entries:
Sept. 12
Debit Available for Sale Investment $133,200
Credit Cash Account $133,200
To record investments in the common stock of Bengals Inc., 11,110 shares at $12 per share.
Dec. 31:
Debit Unrealized Loss on Available for Sale Investment $22,200
Credit Available for Sale Investment $22,200
To record the fair value of the investment.
b) The unrealized gains and losses are included in other comprehensive income within the equity section of the balance sheet.
The loss will, therefore, be deducted from other comprehensive income.
Explanation:
Investments held for sale are accounted for at fair value. This implies that at the end of any accounting period, the fair value of the investments will be determined. This is usually the market value. Then, adjustments are made in the asset account according to the fair value. There will be recognized either unrealized gain or loss, which are taken to other comprehensive income in the balance sheet under the equity section.
Answer:
When Economists say that humans make decisions at the margin they mean that decisions are made on the basis of the cost and benefit of getting an additional unit of a good/ service.
Marginal benefit refers to the additional utility that we will derive from consuming one extra unit of a good or service and factors in heavily into our decision making. We usually accept a decision if the Marginal benefit is higher or equal to the Marginal cost ( cost of the additional unit) of the good/service.
If the Marginal Cost is instead higher, the decision would most probably be cancelled.
Answer:
b. When there is a lack of importance of the buyer to the supplier group
Explanation:
According to Porter there are five forces that can cause rivalry in a production industry. These are supplier power, threat of new entrants, buyer power, threat of substitutes, and degree of rivalry.
Supplier power is when suppliers are able to benefit from the producers by increasing prices of inputs and gaining some industry profit. Since suppliers supply input and labour to the producer they have a greater control of there is lack of importance of the buyer to the supplier group.
This means that the supplier group has more control on price and quality it supplies to the buyer with buyer having little choice but to buy.
If however buyer is more important to the supplier it means they can control price and quality of inputs
Answer:
Operations management is relevant to improve the overall productivity in an organization as it involves working with all departments in the organization.
Explanation:
Operations management involves <u>planning, organizing and controlling the production processes by which raw materials are converted into valuable goods and services to be distributed to customers.</u>
An operations manager works with managers in other organizational functions to <u>improve the overall productivity in the organization.</u>
He or she maintains contact with; the financial manager to agree on the budget needed for production, the purchasing manager to determine what raw materials will be purchased for production, the personnel manager to sort out the human resources required for the production process, and the marketing manager to ensure that customer needs are taken into consideration when producing goods and services.
Answer:
D) generates the highest contribution margin per stamping machine hour
Explanation:
Since the stamping machine is Kinsi's constrained resource, or bottleneck resource, in order to maximize its profit, the company should manufacture the products that maximize the utility of the stamping machine. The product that maximize the utility are the one that have the highest contribution margin. Therefore Kinsi must produce the products that have the highest contribution margin per stamping machine hour.
